Fintech In Kenya: A Policy And Regulatory Perspective

The broader objective of this paper was to carry out a policy and regulatory review of the framework supporting the fintech ecosystem in Kenya. In light of rapid innovations in fintech, it is at a nascent stage of development and characterized by a dearth of and scattered information. This study seeks to bridge this gap by contributing to the evolving body of knowledge in the fintech regulatory ecosystem in Kenya. Employing a qualitative approach, the study paints the journey towards financial technology in Kenya from the onset of independence. Resulting the study documents this journey into two-fold: a period of evolution of the fintech policy environment, and a phase of concrete policy proposals on fintech. In the former phase, the study innovatively presents a framework of five building blocks in support of the fintech policy ecosystem evolution. Furthermore, the regulation of the Fintech industry in Kenya is found to be sector specific particularly in financial services sector where the core financial activity provided is addressed without concentrating on the technology deployed in offering the service. Moreso, the regulatory approach guiding fintech can be described as ‘test and learn’ blended with inclusion of regulatory sandboxes.